Aave Deploys V3 On Aptos Testnet, Marking Its First Launch On Non-EVM Chain
In Brief
Aave announced the deployment of Aave V3 on the Aptos testnet as a preparatory step for a potential mainnet launch, marking its first integration with a non-EVM blockchain.
Decentralized finance (DeFi) lending platform Aave announced the deployment of Aave V3 on the testnet of Aptos, a Layer 1 blockchain platform, marking Aave’s initial integration with a non-EVM blockchain. The testnet phase is designed to assess the safety, performance, and stability of Aave V3 on Aptos, serving as a preparatory step toward a potential launch on the mainnet.
The deployment comes after a temperature check proposal and a subsequent snapshot vote, both receiving community approval. In its proposal, the Aptos Foundation—responsible for the Aptos blockchain’s development—emphasized such advantages of deploying on Aptos as the platform’s high transaction throughput, low transaction costs, and improved security features facilitated by the Move programming language.
Aave Labs, the organization behind the development of Aave, views these factors as positioning Aptos as a strong candidate for Aave’s first deployment outside the Ethereum Virtual Machine (EVM) ecosystem. Aptos has experienced substantial growth, with its total value locked (TVL) rising from just over $100 million to approximately $1.8 billion by the end of 2024, highlighting its increasing appeal for DeFi adoption. The announcement of native USDC and USDT support on Aptos last year further broadened the range of familiar collateral options available for the platform, pending assessments by Aave DAO’s risk providers and community approval.
Collaboration with Chainlink played a critical role in enabling the Aptos testnet deployment. Aave Labs worked alongside the Aptos Foundation and Chainlink to implement production-ready price feeds for Aave V3 on Aptos. The process prioritized a security-first mindset from the outset, incorporating security researchers to uphold rigorous safety standards, which remain central to Aave’s development philosophy.
Steps To Join The Testnet
In order to participate in the Aave V3 testnet, users are advised to download the Petra wallet, a tool designed for interacting with the Aptos blockchain. Next, they can obtain APT tokens by using the Aptos testnet faucet and request market assets through the testnet UI faucet. After completing these steps, users can experiment with the testnet functionality, utilizing any of the assets supported in this testing environment.
During the testnet phase, Aave Labs plans to thoroughly evaluate the Move-based implementation of Aave V3 to ensure its safety, stability, and performance before moving forward with a mainnet launch, which will require governance approval. This phase will also involve close collaboration with the Aptos team, security experts, and auditors. Security audits are already planned with firms such as Certora, SpearBit, and OtterSec, alongside a security contest following the audit process. Additional security-related initiatives may be considered over time, with timely updates provided to the DAO and service providers.
Aave Labs will also work with Chainlink to integrate oracle and Cross-Chain Interoperability Protocol (CCIP) support, while engaging other Aave DAO service providers to determine the infrastructure and tools necessary for a successful Aptos mainnet deployment.
Aave operates as a non-custodial liquidity market protocol, offering users to act as liquidity suppliers, contributing their funds to the protocol and earning passive income through accrued interest. Alternatively, users can take on the role of borrowers, accessing funds through either perpetual borrowing or one-block liquidity mechanisms. This structure provides participants with a versatile and decentralized way to engage with the protocol.
Aave V3 introduces improvements such as enhanced capital efficiency, increased security measures, and cross-chain functionality, all aimed at strengthening decentralization within the protocol. Key features include an isolation mode that enables Aave Governance to list new assets as isolated assets with designated debt ceilings, as well as an efficiency mode (E-mode) that optimizes capital usage when the collateral and borrowed assets are closely correlated in price.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
